Robinhood Gold, Earn 3% Interest on Your Uninvested Cash
Robinhood introduced today a new Robinhood Gold benefit that enables members to earn 3% interest on their brokerage cash. That’s double the rate of 1.5% for non-Gold members. With the new interest rate, Gold customers can now earn even more income on their uninvested cash while they plan their next move. The added benefit comes on the heels of the Fed rate hike earlier this week.
Effective immediately, all of these cash sweep balances are now earning 3% interest with the interest compounding daily. Interest is then paid out monthly by the program banks, and customers can keep track of how much they’ve earned directly within the app.
Customers who wish to enroll in cash sweep can search for ‘Cash Sweep’ directly within the app, can find it via the ‘Discover more’ carousel, or they can tap the ‘Account’ icon in the bottom right corner, navigate to the ‘Investing’ tab in the top left menu, and select ‘Enable cash sweep.’
All eligible customers who opt in to brokerage cash sweep have their uninvested brokerage account cash automatically “swept,” or moved, into deposit accounts at a network of six program banks. Cash deposited to these banks will be covered by FDIC insurance up to a total maximum of $1.5 million (up to $250,000 per program bank, inclusive of deposits customers may already hold at the bank in the same ownership capacity). These banks will pay interest on the swept cash.
Customers can upgrade to Robinhood Gold for just $5 a month and new customers will receive a free 30-day trial. Those not enrolled in Robinhood Gold can still earn 1.5% interest for all uninvested brokerage cash once enrolled in cash sweep. You can sign up for Robinhod here.